By Steve Agbota
In a major ruling, the Federal High Court in Lagos has declared the collection of the Practitioners Operating Fee (POF) by the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) from Licensed Customs Agents as illegal and without statutory backing.
The judgment, delivered on Monday, May 26, 2025, by Justice D.E. Osiagor, held that the CRFFN lacks the legal authority to regulate Licensed Customs Agents (LCAs), as their oversight falls exclusively under the Nigeria Customs Service (NCS) and the Minister of Finance, as stipulated by the Customs and Excise Management Act (CEMA).
The case, which has spanned several years, was filed by the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) against the CRFFN and the Minister of Transportation in Suit No. FHC/CS/765/2018. A copy of the court judgment obtained by Daily Sun confirms that the court nullified the directive issued by the Ministry of Transportation mandating LCAs to register with the CRFFN, pay subscription fees, and the controversial POF as preconditions for port access and license renewal.
The court was unambiguous in its ruling: “Only the Minister of Finance, acting through the Nigeria Customs Service, is statutorily authorised to regulate the business and operation of Licensed Customs Agents,” the judgment stated. It further clarified that Section 2 of CEMA defines “Minister” specifically as the Minister of Finance, while Sections 153 and 156 outline the licensing, oversight, and permissible fees for LCAs—none of which empower the Ministry of Transportation or CRFFN to impose additional requirements.
Justice Osiagor also emphasized that the CRFFN Act of 2007 was enacted solely to regulate freight forwarders and cannot be extended to Customs agents without violating constitutional and statutory protections.
“Any overlap in port operations between freight forwarders and Licensed Customs Agents does not justify regulatory conflation,” the court ruled.
Reacting to the verdict at a press conference in Lagos over the weekend, Mr. Lucky Amiwero, President of the NCMDLCA, welcomed the decision, describing it as a victory for justice and professional integrity.
“We have always maintained that the POF collection was not tied to any service provided on imports or exports. This judgment vindicates our position,” he said.
He reiterated that Licensed Customs Agents, as professionals licensed under CEMA, form a distinct body separate from freight forwarders, who fall under CRFFN’s regulatory scope.
“NCMDLCA is a body of licensed Customs agents—not freight forwarders—and we shall ensure that our members are no longer subjected to unlawful levies or obstructed from carrying out their duties at the ports,” he added.
Amiwero further stated that the association would pursue the refund of all POF payments previously collected by CRFFN from Licensed Customs Agents.
“We will follow due process to recover funds collected illegally. So far, there is nothing tangible to show for the funds. No infrastructure, no development projects—we must ask: where did the money go?”
He also warned that any attempt by the CRFFN or the Ministry of Marine and Blue Economy to appeal the ruling would be met with a strong legal response.
“If they choose to go on appeal, we are ready to meet them in court again,” he said.
This ruling marks a significant turning point in the ongoing tussle over port access regulations, reaffirming the autonomy of Customs agents and restoring regulatory clarity within Nigeria’s maritime logistics framework.
